Digital Transformation

Electronic banking to become ‘key’ to the payment industry

Banking over smartphones and tablets expected to grow in popularity

Technological developments are almost invariably designed to improve efficiency and make a service as effective and accessible as possible, and the same can be said of attempts to increase the viability of the electronic payments industry.

So with everything from account transfers to consumer purchases and paying bills over the web contributing to the growth of online transactions, there appears to be real scope for the financial world to increasingly adopt electronic practices – providing appropriate security measures can cope with the transition.

"I certainly do believe the whole idea around digital banking and electronic banking is a really key component," said Richard Wagner, chief executive officer at Advanced Payment Solutions, when questioned on the future of the payments sector.

"You’re seeing things like e-wallets and such out there and there are finally some innovative new ways for people to bank."

As electronic payments begin to grow in popularity and both business and consumer spheres adapt to the change, it seems that the systems will become more commonplace in the coming years if they are able to provide a reliable and consistent service.

Yet given the security concerns many people have relating to the safety of details stored in virtual space, any substantial takeoff will have to address the fears of users, making effective records management and secure online backup considerations vital to protecting sensitive data.

Indeed, Mr Wagner also believes that consumers will have to be won over by mobile network providers when it comes to handling financial transactions via smartphones, as banks are still the traditional, trusted source for payments.

"O2 and Vodafone have a lot of money to try and convince customers, but what we’ve seen is as much as [the public] dislikes banks, they don’t want anyone else managing their money," he added.

If the electronic payments industry is able to meet the challenges it faces effectively, then it seems likely that consumers will gradually become more willing to subscribe to such services.